Macedonia Falls Short in Anti-Money Laundering Efforts, Experts Warn

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Skopje, Macedonia - International experts have expressed concerns over Macedonia’s efforts to combat money laundering and terrorist financing.

Despite some progress, the country still faces significant challenges in implementing effective anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Key Challenges Identified

The Financial Intelligence Office (FIO) has taken steps to enhance customer due diligence (ECDD), but information provided by authorities is not regularly updated.
Limited number of suspicious transaction reports (STRs) submitted by non-banking financial sectors, indicating a lack of success in this area.
No direct and unconditional obligation to appoint an AML/CFT compliance officer for reporting entities.

Fit and Proper Requirements

Provisions do not fully align with international standards.
Checks are only carried out to a limited extent in practice.

Supervisory System

Five primary responsible supervisory bodies, but allocation of competences and powers is not clearly defined.
Sanctions for AML/CFT breaches are relatively low:
- Fines ranging from €80,000 to €100,000 for legal persons.
- Fines ranging from €5,000 to €10,000 for responsible individuals.

Designated Non-Financial Businesses and Professions (DNFBPs)

While some progress has been made in increasing technical compliance with FATF Recommendations:
- Many DNFBPs lack awareness of beneficial ownership and politically exposed persons (PEPs).
- Real estate representatives, notaries, lawyers, and accountants demonstrated lower awareness of these concepts.

Conclusion

While Macedonia has made some progress, more needs to be done to effectively combat money laundering and terrorist financing. Enhanced customer due diligence and regular updates on information provided by authorities are crucial steps towards improving the country’s AML/CFT measures.